Automobile Ceramics Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Automobile Ceramics Market Is Segmented By Type (Zirconia Oxide Ceramics, Alumina Oxide Ceramics, Titanate Oxide Ceramics, Others), By Application (Automotive Engine Parts, Automotive Exhaust Systems, Automotive Electronics, Others), By End Use (Passenger Vehicles, Commercial vehicles), By Region (North America, South America, Europe, Asia Pacific, Middle East & Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Automobile Ceramics Market is estimated to reach at a high CAGR during the forecast period 2024-2031

Automotive ceramics consist of components made from advanced ceramic materials such as alumina and zirconia. Ceramic components are used in engine parts that include knock sensors, valve systems, and superchargers. They are used in various sensors and actuators, such as fuel level sensors, fluid level sensors, and oxygen sensors, for vehicle exhaust gas purification. Automobile ceramic products are lighter in weight, more durable, and offer better corrosion-resistance properties in comparison with traditional materials such as metals and plastics. This factor is catalyzing the wide adoption of ceramic materials in a wide array of applications in the automotive industry. Changing vehicle emission control regulations, increasing consumer demand for fuel-efficient vehicles, and growing electric vehicles are the key drivers of the global automobile ceramics market.

Market Summary

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Market Dynamics

Increasing demand for metals and plastics alternatives to augment demand

Changing consumer preferences has limited the availability of raw materials for automakers, along with performance standards and safety has caused a limited ability in reducing automobile weight. Light-weight components of every potential vehicle have been under investigation. Material substitution for heavier steel and iron with advanced composites such as plastics, ceramics, magnesium, and aluminum, are essentially boosting the vehicle fuel economy. Material substitution majorly depends on the cost, mechanical properties, manufacturing capabilities, and design. Additionally, for the reduction of fuel consumption, enabling weight reduction is essential. Ceramics have better insulation and thermal properties and are cost-efficient which supports the consumer demand for lightweight automobiles. These properties combined with advanced production & research methodologies and structures play an important role in reducing the total weight of the engine and other heat sensor parts of vehicles. Technological advancement further supports the use of advanced ceramics as an alternative material for automotive manufacturing.

Companies are continuously focusing on the development of low-cost technologies to help contribute to the high demand for lightweight and affordable vehicles. Ceramics are used in various products such as knock sensors, valve systems, exhaust pipes, etc. Owing to their high melting point and durability, ceramics are ideal materials to be used for developing new technologies for reducing the manufacturing cost and weight of the vehicle. The introduction of advanced and beneficial technologies is further driving the market growth. In April 2021, NGK Spark Plug, manufacturers of automotive spark plugs, announced a $100 million fund to invest in startups and find potential merger and acquisition deals. The company’s corporate venture fund is an opportunity to work with startups and expand into new businesses.

However, the high cost of ceramics is expected to restrain the market growth. The material cost of ceramics is higher than that of metal and other alloys. This may hinder the adoption of ceramics used in automobile manufacturing. High demand for affordable vehicles acts as a restraining factor for market growth. Technologies supporting low-cost production techniques to reduce the cost of the vehicle also risk the high adoption of ceramics into the automotive industry. Furthermore, the recycling of ceramics is difficult and adds to the issue regarding the use of ceramics in the automotive industry. Thereby, restraining the global market of automotive ceramics.

Market Segmentation

The automotive engine parts segment is anticipated to expand at a CAGR of YY%

The automotive engine parts segment will dominate the market during the forecast period. This is attributable to the increasing adoption of the product for the manufacturing of glow plugs, spark plugs, electronic fuel pumps, high-pressure pumps, sealing & insulation rings, valves, and others. By usage of ceramic materials in automobiles helps to maintain engine efficiency through the protection of the engine parts. This is the factor that drives the high consumption of ceramics in the automotive industry, thereby, leading to market growth.

Passenger vehicles accounted for the highest market share of YY% in 2020 and are likely to maintain their position during the forecast period. This is attributed to a higher share of passenger vehicles in overall automotive production. As per the International Organization of Motor Vehicle Manufacturers (OICA), nearly 67.1 million commercial vehicles were produced globally in 2019. Government incentives for Electric Vehicles (EVs) are projected to assist in the growth of the market. For instance, in the U.S., an income tax credit of up to USD 7,500 is provided by the federal U.S. government on the purchase of EVs depending upon their battery size. The commercial vehicles segment is expected to grow with a CAGR of XX% during the forecast period. Investment in new facilities for commercial vehicles is projected to assist in the growth of the segment. For instance, a joint venture between Volvo and Eicher Motors is likely to start in the second quarter of 2020 in India. This facility is projected to produce 40,000 commercial vehicles annually.

Market Geographical Share

The Asia Pacific is expected to be the fastest-growing region during the forecast period

The Asia Pacific dominates the market and is expected to grow at a faster rate during the forecast period. This is ascribable to the increasing spending habit of consumers in the middle-class category. This growth can be associated with rapid economic expansion in developing countries such as China, India, and Malaysia. Additionally, automotive ceramics manufacturers from the western region are shifting to the Asia Pacific region on account of leveraging lucrative opportunities, availability of cheap labor, and less competition. This shift can also be due to an increase in the automotive manufacturing activities within the region, and a cost-effective production hub available is further expected to drive the market.

The European region may witness considerable market growth due to the region being the world’s leading producer of automobiles. The automotive industry is the most significant donor to the economy of the European Union. The European Commission aims at identifying and assessing the policy issues to encourage healthy competition in the automotive industry and recommend feasible solutions by taking into account the environmental, social, and economic goals. The effort to improve the internal market regulation of the automotive industry is expected to favor market growth. Germany is one of the leading automobile producers and accounts for more than 29% of the total European Union automobile market share. Germany produces around 6 million vehicles including commercial and passenger vehicles every year. Moreover, German automobile companies have accounted for the manufacturing of 5.5 million automobile units in overseas markets.

Market Competitive Landscape

The automobile ceramics market is fragmented. Some major companies operating in this market include Corning, Ceradyne, IBIDEN, and Saint Gobain Ceramic Materials among others. The major companies are constantly forming new strategies, including developing new technologies and creating new products according to consumer demand. Additionally, companies are adopting digital marketing strategies for revenue-boosting. For instance, in April 2020, Murata Manufacturing Co., Ltd. started mass production of two new multilayer ceramic capacitors for automotive applications. This is a step toward expanding the lineup to meet market needs and contributing to automotive performance and features.

COVID-19 Impact

Negative impact on the automobile ceramics market

The automotive industry was one of the worst affected industries due to the COVID-19 pandemic as it disrupted the entire supply chain, starting from material sourcing to the end-use consumer. On the supply side of automotive ceramics, the closure of operations in China deeply impacted the supply of ceramic materials. China is a key region for the supply of ceramic raw materials such as zirconia and alumina. On the demand side, there was a change in consumer spending patterns as consumers delayed purchasing a new vehicle to minimize their spending. This decline in automotive sales led to the loss of revenue for all the automobile manufacturing companies. The decline in consumer demand was evident in their quarterly sales. Major car companies, such as Toyota, have temporarily suspended or intend to temporarily suspend the production of automobiles and components at selected plants in Japan and overseas. In the U.S., passenger car sales went down 21.1% to 8 million units. Japanese car sales in the first 9 months contracted by 18.1%. Car registrations in China are now down 13.2% to 13 million units. Between January and August 2020, both imports and exports of commercial vehicles fell significantly. Registrations of vans in the EU fell by 22.8% to 1 million units from January 2020 to September 2020. However, the global automotive industry has shown positive signs of recovery in early 2021, with a major part of sales being held by the passenger vehicle segment.